NBS announces further reduction in mortgage interest rates

The New Building Society Limited (NBS) has announced a further reduction in its mortgage interest rate. This is a decision that would apply to both current and new mortgages, and is likely to lighten the burden on homeowners.
On Wednesday, NBS explained that as of January 1, 2022, interest on loans from $6 million to $15 million would be reduced from 6.25 per cent to 5.95 per cent per annum.
Meanwhile, borrowers who qualify for low-income loans ($6M and below) would pay an interest rate of 4.00 per cent per annum.
“NBS continues to play a critical role in providing affordable mortgage loans to Guyanese, and in the process helping them to realise their dreams of home ownership. Since April 1, 2021, NBS announced an across-the-board reduction in mortgage interest rates to all of its borrowers as we welcome the increase in the Society’s mortgage ceiling announced by the Government from $12M to $15M dollars. With that increase, borrowers can now build a decent and modern home,” the NBS has said.
“We have recognised that the Government has been aggressively pursuing policies and taking decisive action to improve the nation’s housing stock. This is a welcome development, and one that is pleasing to Guyanese in all walks of life. In this regard, the NBS commits itself, as an active partner, to continue to support the enhanced housing drive and delivering finance to thousands of Guyanese who will benefit from the Government’s programme,” it added.
NBS further explained that its reduction of interest rates on mortgage loans has been a consistent feature of the Society’s policy, which has, over the years, seen mortgage interest rates reduced from 20 per cent per annum in 1990 to the current interest rate of 5.95 per cent per annum.
“While implementing this reduction, the Society still offers the best interest rate of 2.75 per cent to all its savings account holders in the Save and Prosper category. The reduction in interest rates will aggregately put millions of dollars per annum into the pockets of borrowers, which is in keeping with our mandate to ensure that Guyanese can acquire ready and low-cost financing, and therefore become home owners.
“We salute the Government’s housing drive, and call on Guyanese to make full use of our affordable mortgage rates,” NBS also said in its statement.
Since coming to office, the People’s Progressive Party/Civic (PPP/C) Government has made it clear that it intends to fulfill its manifesto promise to distribute 50,000 house lots over the next five years. The Government has allocated $6 billion for enhancing infrastructure in existing housing areas. A significant sum has also been set aside for improving water service and developing new wells.
One of the measures outlined in the 2021 budget had been the increase in the loan ceiling. It is one of several measures the Government is pursuing in a bid to re-energise an economy stunned by the COVID-19 pandemic. The measure also goes hand in hand with the Government’s drive to deliver on its promise of 50,000 house lots within its five-year term. (G3)